Capital Reorganisation

RNS Number : 0445R

Pittards PLC

14 November 2012

 



PITTARDS PLC

(AIM: PTD)

Capital Reorganisation

Pittards, the specialist producer of technically advanced leather and luxury leather goods for sale to retailers, manufacturers and distributors, announces a proposed reorganisation of share capital designed to eliminate the accumulated deficit of reserves on the retained earnings account on the Company's balance sheet. This is being proposed in order to facilitate the payment of dividends which under company law can only be made from distributable reserves.

The Company has convened a General Meeting for the purpose of approving the proposed capital reduction which will be effected by applying amounts standing to the credit of the Company's share premium account and capital redemption reserve in order to eliminate the accumulated trading losses. If approved by shareholders, the reduction  in share capital will require to be confirmed by the courts.

It is emphasised that no dividend or other distribution is currently being declared or recommended. This will be a matter for the directors to consider in due course in the light of the Company's trading and taking into account its working capital and capital expenditure requirements.

The General Meeting has been convened for 7 December 2012 and the Company has been advised that, if approved by shareholders, court approval to the proposed capital reorganisation should be obtained by no later than 30 January 2013.

The Company is also proposing the adoption of new Articles of Association primarily for the purpose of updating the Company's existing Articles of Association in line with the provisions implemented (including those relating to electronic communications between the Company and its Shareholders) by the Companies Act 2006 and an appropriate resolution is also included in the Notice convening the General Meeting.

The Board considers the proposed reorganisation of share capital and adoption of the New Articles to be in the best interests of the Company and its Shareholders.

Contacts:
Pittards plc	www.pittards.com
Stephen Boyd, Chairman	[phone]
Reg Hankey, Chief Executive	[phone]
Jill Williams, Finance Director	[phone]
WH Ireland Limited	www.wh-ireland.co.uk
John Wakefield / Marc Davies	[phone]

 

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